Category: Abandonment of Middle Class

Paul Ryan: You Must Be Free to Get Sick With No Insurance

The Daily Escape:

(Stranded bull shark found after flooding from Cyclone Debbie in Australia – photo from Reuters)

In an interview with “CBS This Morning” House Speaker Paul Ryan says he doesn’t want to negotiate with Democrats on health care. Ryan, speaking to co-host Norah O’Donnell:

I don’t want that to happen. You know why? I want a patient-centered system, I don’t want government running health care…The government shouldn’t tell you what you must do with your life, with your health care. We should give people choices.

Ryan centers his defense of the failed Trumpcare bill on the notion of individual freedom. He said he fears that Trump might move to work with Democrats so that he can make good on campaign promises to redo Obamacare, and “that’s not, that’s hardly a conservative thing.”

Ryan’s idea of freedom for the American people is the right to choose whether to have health insurance or not, and if they choose health insurance, to be free to choose expensive or cheap insurance.

But he sees life as a monetary transaction. In this appearance on Face The Nation March 12, 2017: (hat tip Ed Walker)

DICKERSON: How many people are going to lose coverage under this new —

RYAN: I can’t answer that question. It’s up to people. Here — here’s the premise of your question. Are you going to stop mandating people buy health insurance? People are going to do what they want to do with their lives because we believe in individual freedom in this country. So the question is, are we providing a system where people have access to health insurance if they choose to do so…We’re not going to make an American do what they don’t want to do. You get it if you want it. That’s freedom.

Ryan’s freedom will get rid of the Essential Health Benefits that are mandated under the ACA in his Trumpcare bill. The Essentials set the minimum coverage for any policy offered on the exchanges. They include lab tests, drugs, maternity care, treatment for substance abuse and mental illness, and others.

If insurance companies can issue policies that don’t cover these mandated benefits, policies will be cheaper. That will increase the number of people with policies that won’t cover treatment they suddenly need.

So when Ryan says “freedom” he means: You have the freedom to give money to an insurance company to buy any policy you can afford; you can shop around for a policy that may or may not provide the coverage you eventually need; or you can take the risk of bankruptcy and/or denial of health care when you get sick.

But, in Ryanworld, individual freedom to choose doesn’t extend to abortion, despite it being the law of the land.

Ryan assumes that if the government were involved, it couldn’t negotiate better drug prices. He assumes government wouldn’t regulate against the predatory excesses of health insurers, health care providers, and drug companies. Government involvement does violence to his Randian wish for a perfect and omniscient free market. He assumes that people with limited resources would choose to forego rent, food, or education to buy inadequate health insurance.

Let’s give Paul Ryan the benefit of the doubt: Say he knows that this is horseshit, but he needs to legislate. The alternative is that he is the worst kind of ideologue.

Conservatives spill the word “socialism” like beer at a frat party. They think it coats everything and makes everything smell, at least politically.

It’s hard to believe that the GOP has a true notion of what socialism is, or how it works.

It’s all around us, and Republicans are expert practitioners. Their negative talk about socialism is another example of their constant projection onto Democrats and progressives. Is it socialism when Ivy League admissions favor the rich? Or when the rich help other rich people get into the country club? Or when they all appoint the same people to corporate boards?

They despise it when the rest of us use collective action; when voters get their government to combat anti-labor and anti-monopoly practices, when voters work together for better schools, safer foods, clean water and safe working conditions.

That’s bad socialism, not the good socialism practiced in Boston’s Back Bay or on NYC’s Upper East Side.

It’s good socialism when companies work together in the US Chamber of Commerce, share information, and spend millions influencing government to increase their bottom lines.

Its bad socialism when people fight for practical affordable access to health insurance.

Paul Ryan’s vision of freedom has a lot in common with Kris Kristofferson’s “Me and Bobby McGee“:

Take away lyric:

Freedom’s just another word for nothin’ left to lose,

Nothin’ ain’t worth nothin’ but it’s free.

Those who read the Wrongologist in email can view the video here.

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Saturday Soother – March 25, 2017

The Daily Escape:

(Bobcat in Yosemite – photo by Rollie Rodriguez)

It’s Saturday of a week filled with political body blows. First, Rep. Devin Nunes acted as Trump’s Poodle by grandstanding in front of the press and then running to the White House to tell on the Intelligence Community. Then we all watched the Trumpcare fiasco. Trump issued an ultimatum to pass or forget Trumpcare, and Congress (as of this writing) can’t do either. Considering that Trumpcare has support of about 17% of the people, what special hell do Republicans wish on the country?

Finally, Neil Gorsuch. The Supreme Court nominee carved his way through the Senate Judiciary Committee, dodging substantive questions, and playing hard not to lose the nomination. A Supreme Court decision that potentially impacts Judge Gorsuch’s chances was announced during his second day of testimony. You probably didn’t hear anything about it, what with all of the cacophony Trump generates, so here you go:

 About 40 minutes after Supreme Court nominee Neil Gorsuch began his second day of testimony before the Senate Judiciary Committee, all eight of the justices he hopes to join said a major disability decision Gorsuch wrote in 2008 was wrong.

That’s right, the Supremes voted 8-0 against a Judge Gorsuch opinion.

Both the Supreme Court’s decision this week and Gorsuch’s 2008 opinion involved the Individuals with Disabilities Education Act (IDEA), which requires that public school systems which take certain federal funds provide a “free appropriate public education” to certain students with disabilities.

These were two different cases, but Chief Justice John Roberts wrote the unanimous opinion that mentioned Gorsuch’s opinion. In Thompson R2-J School District v. Luke P., a case brought by an autistic student whose parents sought reimbursement for tuition at a specialized school for children with autism, Gorsuch read IDEA extraordinarily narrowly. Under Gorsuch’s opinion in Luke P., a school district complies with the law so long as they provide educational benefits that “must merely be ‘more than de minimis.’”

“De minimis” means so minor as to merit disregard. So Gorsuch essentially concluded that school districts comply with their obligation to students with disabilities so long as they provide those students with slightly more than nothing. But, the Supreme Court rejected Gorsuch’s approach. The IDEA, Chief Justice Roberts wrote:

Is markedly more demanding than the ‘merely more than de minimis’ test applied by the Tenth Circuit.

The Tenth Circuit is Judge Gorsuch’s. Roberts added that Gorsuch’s approach would effectively strip many students the disabilities of their right to an education:

When all is said and done, a student offered an educational program providing merely more than de minimis progress from year to year can hardly be said to have been offered an education at all. For children with disabilities, receiving instruction that aims so low would be tantamount to “sitting idly… awaiting the time when they were old enough to ‘drop out.’

To the contrary, the unanimous Supreme Court concluded, in most cases a student’s progress should be measured according to whether they are able to keep up with their peers without disabilities.

When even Clarence Thomas goes against you, you know your ruling isn’t mainstream. The last thing we need is another justice who votes for the big-guys (business and government) over the little people.

Unfortunately, Gorsuch is a mainstream Republican. Another one who has a policy of doing “de minimis” for everyone in America who isn’t a big donor to the GOP’s mean-spirited agenda.

As the weekend begins, you really need a break. Take a few minutes and think about Annie Moore, who was the first person to enter Ellis Island when it opened for immigrants in 1892. Annie came from Ireland.

This song, “Isle of Hope and Tears” was written by Brendan Graham. It has been performed by many Irish groups over the years. Today, we hear the Irish Tenors:

America used to be the hope of the world. It’s time to decide how it can become that again.

Sample Lyrics:

On the first day of January,
Eighteen ninety-two,
They opened Ellis Island and they let
The people through.
And first to cross the threshold
Of that isle of hope and tears,
Was Annie Moore from Ireland

Who was all of fifteen years.

Isle of hope, isle of tears,
Isle of freedom, isle of fears,
But it’s not the isle you left behind.
That isle of hunger, isle of pain,
Isle you’ll never see again
But the isle of home is always on your mind.

Those who read the Wrongologist in email can view the video here.

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Monday Wake Up Call – March 20, 2017

The Daily Escape:

(Restored American Cars at Jose Marti Airport, Havana Cuba. 2014 photo by Wrongo)

America is snoozing on the Republican effort to turn health insurance into a party for the powerful. The LA Times’ reporter Michael Hiltzik took a look at the back pages of Paul Ryan’s Trumpcare bill and found a loophole that allows health insurance companies to pay their CEOs more money:

It does so by removing the ACA’s limit on corporate tax deductions for executive pay. The cost to the American taxpayer of eliminating this provision: well in excess of $70 million a year. In the reckoning of the Institute for Policy Studies, a think tank that analyzed the limitation in 2014, that would have been enough that year to buy dental insurance under the ACA for 262,000 Americans, or pay the silver plan deductibles for 28,000.

This is the opposite of the executive pay strategy under Obamacare. The ACA decreed that health insurance companies could deduct from their taxes only $500,000 of the pay of each top executive.

That’s a tighter restriction than the limit imposed on other corporations, which is $1 million per executive. The ACA closed a loophole for insurance companies enjoyed by other corporations, which could deduct the cost of stock options and other “performance-based” pay; for insurance companies, the deduction cap is $500,000 per executive, period. The reduced deductions would have been the equivalent of raising $600 million in new taxes over 10 years.

Well, that was more than the executives and their bought and paid for Congress critters could stand, so buried in the 123 pages of the House Republican bill repealing the Affordable Care Act, Hiltzik found that:

The House Republican bill repeals the compensation limit as of the end of this year. The GOP hasn’t exactly trumpeted this provision; it’s six lines on page 67 of the measure, labeled “Remuneration from Certain Insurers” and referring only to the obscure IRS code section imposing the limit. Repeal of the provision apparently means that the insurers will be able to deduct $1 million in cash per executive, plus the cost of “performance-based” stock awards and options, like other corporations.

So now, insurance companies’ executives will have a level playing field with other CEO’s. This fits in with the rest of the GOP bill: It does nothing to bring coverage to more Americans or make it cheaper. But it does help to further line the pockets of the privileged, and maybe that’s the point.

Wake up America! As Don Henley once said, “The large print giveth, and the small print taketh away”. We need to read what the GOP is really doing on the back pages of their legislation. To help us wake up, let’s pay tribute to Chuck Berry. To call him a legend of American musical history is an understatement. He received a Grammy Lifetime Achievement Award and Kennedy Center Honors. Berry’s “Johnny B. Goode” was the only rock-and-roll song included on the Voyager Space Probe Record.

Among the bands in which you hear his influence are The Rolling Stones and The Beatles. Both recorded his songs, and John Lennon said this:

If you tried to give rock and roll another name, you might call it Chuck Berry.

Berry played a Gibson model ES350. Sadly, while many great Rock and Roll guitarists have signature Gibsons, there is no Chuck Berry model. Here is Berry with a live version of “Roll Over Beethoven” from 1956. While the video isn’t the best, check out his guitar work on the intro:

Chuck probably duck-walked up to the Pearly Gates.

Those who read the Wrongologist in email can view the video here.

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Sunday Cartoon Blogging – March 19, 2017

Welcome to the start of another week in Trumplandia. The WaPo had a depressing story about how little some voters know about what in America’s politics impacts their lives:

Soon after Charla McComic’s son lost his job, his health-insurance premium dropped from $567 per month to just $88, a “blessing from God” that she believes was made possible by President Trump. “I think it was just because of the tax credit,” said McComic, 52, a former first-grade teacher who traveled to Trump’s Wednesday night rally in Nashville

She thinks that Trump has already made an important and favorable change to her family’s health insurance. Her son’s price decrease was actually due to a subsidy he received under the Affordable Care Act that Ms. McComic doesn’t realize is still in place. It has nothing to do with the tax credits proposed by Republicans as part of the Trumpcare bill still making its way through Congress.

She is a sample of one, but, Ms. McComic completely trusts Donald Trump. More from WaPo:

McComic said she’s not worried about her disability benefits changing or her 3-year-old granddaughter getting kicked off Medicaid or her 33-year-old son’s premiums going up. “So far, everything’s been positive, from what I can tell,” she said, waiting for Trump’s rally here to begin Wednesday night. “I just hope that more and more people and children get covered under this new health-care plan.”

Anecdotes like this reveal how surprisingly widespread ignorance of the political world is among voters.

Worse, it shows that people who are true believers don’t worry about how political decisions will impact them. Trump voters heard the Overlord promise to take away their healthcare insurance by repealing the ACA.

But they believed him when he said they would get something else that would be much better, so it’s all good.

There are decades of research about how people process information which would probably support the thinking that Ms. McComic is demonstrating cognitive bias. Her trusted news sources tell her that Trump is replacing Obamacare with tax credits, and she concludes that’s why her costs are magically lower.

Is there a way to cut through this and get voters like McComic to think more deeply, or to consider returning to the Democrats? Maybe not. But candidates in 2018 should pound these voters with: “This program you like was brought to you by Democrats.”

You like public parks? High-quality public schools? Medicaid? The GI Bill and Veterans’ benefits? Clean air to breathe? Clean water to drink? The fact that you are much less likely to be injured or killed on the job?

All were brought to you by Democrats. And the 2017 version of the Republican Party is planning to take away ALL of them.

The Guns vs. Butter argument will be resolved in favor of guns. Feeling safer?

The real kicker is that if Trumpcare and Trump’s Budget are both enacted, they will kill tens of thousands more Americans than will all of the Islamic terrorists and Mexican immigrants in America combined.

Certain things that were certain, seem different under the Republicans:

What did Trump REALLY mean?

But don’t worry, you know he has no real intention of making America great…

There are very few things he means “Literally”:

Trump cries “wolf”, and the White House mobilizes to explain:

Care? None of them care:

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Saturday Soother – March 18, 2017

The Daily Escape:

(Ancient Pagoda in Myanmar – photo by Steve McCurry. McCurry is best known for his iconic 1984 National Geographic magazine photograph “Afghan Girl”.)

This isn’t the millennium we thought we’d have. The 21st century was supposed to be a time of enhanced social justice, and a push toward further global integration. We thought that the arc of history bent unmistakably toward a bright Information Age.

Instead, where are we? Lurching forward towards the second decade of the century with the reins of government in the hands of an ultra-nationalist, someone who wouldn’t shake hands with Angela Merkel, the Chancellor of Germany at the close of their meeting. We also learned more about the tin ear that Republicans have when it comes to enacting a health insurance program. Here is the topper: In a conversation with the National Review’s Rich Lowry, Speaker of the House Paul Ryan (R-WI) bragged about how conservatives now have a once-in-a-generation opportunity to take health coverage away from the most vulnerable Americans:

So Medicaid…sending it back to the states, capping its growth rate. We’ve been dreaming of this since I’ve been around — since you and I were drinking at a kegger…I’ve been thinking about this stuff for a long time. We’re on the cusp of doing something we’ve long believed in.

Not the college experience that most of us had, but for Ryan, it was a time to dream about how, someday, he would take health care away from millions of poor people. The media thinks that this guy is the best and brightest that the Republicans have, and cover him like a serious, sober policy wonk focused on reducing deficits and poverty in market-oriented ways. They refuse to believe that a major elected official would devote his life to the Randian belief that the poor deserve what’s coming to them because they lack the brilliance of a John Galt. It’s one thing to have these thoughts at 20, and an entirely different thing to still have them at 47 years old.

To reiterate what we talked about earlier this week, Speaker Ryan’s health bill, if enacted, would lead to 24 million fewer people having health insurance by 2026, according to the Congressional Budget Office. Of those 24 million, 14 million would lose health coverage because of the changes Ryan wants to make to the Medicaid program.

No wonder Charlie Pierce calls Ryan the “zombie-eyed granny starver”. Many Americans voted for this. Perhaps they now understand buyer’s remorse.

Time to get soothed, if it is possible this week. Grab a cup of Hula Daddy Kona Coffee (just $100/Lb. via the web), sit in the sun room with Wrongo, and watch the 20” of snow melt on the fields of Wrong.

We’ll listen to Dvoƙák’s “Romance for Violin and Orchestra” performed by Tanja Sonc with the Slovenian Philharmonic, conducted by Keri-Lynn Wilson. Dvoƙák originally composed this in September and October 1873 as the slow movement of a string quartet in F minor. He re-scored it for violin and orchestra sometime before December 1877. Here is Romance of Violin and Orchestra, Opus 11:

Those who read the Wrongologist in email can view the video here.

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Trump Knows Budgeting

The Daily Escape:

(Iowa State Law Library)

Trump’s first budget proposal was released on Thursday, and it hews closely to both Trumpian and Republican orthodoxy:

Trump’s first budget…would increase defense spending by $54 billion and then offset that by stripping money from more than 18 other agencies. Some would be hit particularly hard, with reductions of more than 20% at the Agriculture, Labor and State departments and of more than 30% at the Environmental Protection Agency.

The White House blueprint does not address major safety net programs such as Social Security and Medicare, which the Overlord has promised to protect. While there are too many deep cuts to detail fully, here are a few from the WaPo:

It would also propose eliminating future federal support for the National Endowment for the Arts, the National Endowment for the Humanities and the Corporation for Public Broadcasting. Within EPA alone, 50 programs and 3,200 positions would be eliminated.

Trump’s budget will eliminate thousands of government jobs, and that is a serious problem for Washington, DC. Moody’s chief economist, Mark Zandi, estimates that Trump’s proposed cuts would impact the Washington area bigly. It will reduce employment in the region by 1.8%, slash personal income by 3.5% and lower home prices by 1.9%.

Zandi reasons that cuts in non-defense spending would fall disproportionately hard on the Washington region, while the increase in military spending would be spread across the nation. Good paying defense jobs in your district, mostly non-union, and a defense contractor who kicks back to your campaign fund while building weapons that kill the baddies. What’s not to like?

The budget chops funding for the NIH by $5.8 billion, or close to 20%, and low income Americans will also lose:

And the Trump administration proposed to eliminate a number of other programs… [Including] the Low-Income Home Energy Assistance Program, which disburses more than $3 billion annually to help heat homes in the winter. It also proposed abolishing the Community Development Block Grant program, which provides roughly $3 billion for targeted projects related to affordable housing, community development and homelessness programs, among other things.

Some of this represents Trump’s campaign agenda. Office of Management and Budget Director Mick Mulvaney explained on Wednesday:

In fact, we wrote it using the president’s own words. We went through his speeches. We went through articles that have been written about his policies…and we turned those policies into numbers.

You know, things like cuts to the State Department, because diplomacy is for wimps.

But most of Trump’s budget is just a Republican’s wet dream of a “drown the government in a bathtub” program. Having said that, Trump’s recent executive order to restructure the entire executive branch means the White House has broad latitude to make these huge cuts effective by simply shifting priorities of what to actually do with the money.

This budget represents fundamental change. Medicine, education and defense have received the lion’s share of government spending in the past. Any town with a hospital, a college, or a defense contractor had a stable income base upon which to grow their local economy.

Now, the Republican Party no longer believes the government has any role in the first two, so defense contractors will become the only Keynesian game in town.

This will be a terrible new baseline for Democrats to work from, assuming they ever get back into power. Trump means to end all of the New Deal era programs, and growing the tax base to support a return to higher levels of government spending will take decades.

Now, another Irish musical selection for St. Patrick’s Day. Calling modern Irish music “punk” sounds redundant, but there are quite a few punkish Irish bands. Black 47 is Wrongo’s favorite, but today we feature Thin Lizzy with “Whiskey in the Jar”, a traditional Irish song that they updated in 1972.

Phil Lynott was the front man for Thin Lizzy. He was once asked how it felt to be black and Irish, and he answered: “Like a pint of Guinness”. Lynott lived fast, and died at 36 from heart failure in 1986. Here is “Whiskey in the Jar”:

This makes Wrongo want a bottle of Bushmills 21 year old single malt. Oh wait, here’s one!

Those who read the Wrongologist in email can view the video here.

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Is Taxing Robots a Solution to Fewer Jobs?

The Daily Escape:

(Slot canyon with dust devil – photo by Angiolo Manetti)

Yesterday, the Dutch voted in an election pitting mainstream parties against Geert Wilders, a hard-right, anti-Islam nationalist whose popularity is seen as a threat to politics-as-usual across Europe, and possibly, as an existential threat to the EU.

Wilders, who wants to “de-Islamicize” the Netherlands and pull out of the EU, has little chance of governing, as all of the mainstream parties have already said they won’t work with him. Given Holland’s complicated form of proportional representation, up to 15 parties could win seats in parliament, and none are expected to win even 20% of the vote. OTOH, polls show that four in 10 of the Netherlands’ 13 million eligible voters were undecided a day before voting, and there is just 5 percentage points separating the top four parties, so Wilders could surprise everyone.

As Wrongo writes this, the Dutch election results are not known, but PBS NewsHour coverage on Tuesday surfaced a thought about taxing robots. PBS correspondent Malcolm Brabant was interviewing workers in Rotterdam:

Niek Stam claims to be the country’s most militant labor union organizer. He says the working class feel insecure about their prospects because of relentless automation and a constant drive to be competitive. The union is campaigning for robots to be taxed.

Brabant then interviewed a worker:

Robots do not buy cars. Neither do they shop for groceries, which leads to a fundamental question: Who’s going to buy all these products when up to 40% of present jobs vanish?

This isn’t an entirely new idea. Silvia Merler, blogging at Bruegel, says:

In a recent interview, Bill Gates discussed the option of a tax on robots. He argued that if today human workers’ income is taxed, and then a robot comes in to do the same thing, it seems logical to think that we would tax the robot at a similar level. While the form of such taxation is not entirely clear, Gates suggested that some of it could come from the profits that are generated by the labor-saving efficiency…and some could come directly in some type of a robot tax.

The main argument against taxing robots is made by corporations and some economists (Larry Summers), who argue that it impedes innovation. Stagnating productivity in rich countries, combined with falling business investment, suggests that adoption of new technology is currently too slow rather than too fast, and taxing new technology could exacerbate the slowdown.

It can be argued that robots are property, and property is already taxed by local governments via the property tax. It might be possible to create an additional value-added tax for robots, since an income tax wouldn’t work, as most robots are not capable of producing income by themselves.

Noah Smith at Bloomberg argues that the problem with Gates’ basic proposal is that it is very hard to tell the difference between new technology that complements human work, and new technology that replaces them. Shorter Noah Smith: Taxation is so hard!

Why are Western economies stagnant? Why has wage growth lagged GDP growth? Automation is certainly a key factor, but rather than point the finger at the corporations who continually benefit from government tax policies, let’s just assign blame to an object, a strawbot, if you will. That way, we won’t look too carefully at the real problem: The continuing concentration of economic and political power in the hands of fewer and fewer corporations.

Automation isn’t the issue, tax laws that allow economic treason by corporations in their home countries are the issue.

Why is nationalism on the march across the globe? Because fed-up workers see it as possibly the only answer to the neoliberal order that is destroying the middle class in Western democracies.

Let’s find a way to tax robots. Something has to offset Trump’s tax breaks for the rich.

Now, a musical moment. Did you know that “pre-St. Patrick’s Day” was a thing? Apparently, some dedicated celebrators prepare for the day itself by raising hell for up to a week beforehand. With that in mind, here is some pre-St. Pat’s Irish music, with Ed Sheeran singing “Nancy Mulligan” a love song about his grandparent’s marriage during WWII, against the wishes of her parents, and despite their Catholic/Protestant differences:

Those who read the Wrongologist in email can view the video here.

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The CBO and the Ides of March

The Daily Escape:

(Provence – Photo by Veronika K. Ko.)

The Ides of March are today. The Netherlands holds its parliamentary election, the US debt ceiling agreement expires, and Trump is gonna get a ton of postcards.

Congressional Budget Office estimates for Trumpcare (AHCA) came out on Monday, and they’re worse than expected.  Sarah Kliff, Vox’s healthcare reporter, has this:

  • CBO estimates 14 million would lose coverage in 2018. The report projects that much of the early coverage loss would stem from repealing Obamacare’s mandate that all Americans purchase coverage or pay a fine.
  • After that, increases in the uninsured would be from Medicaid cuts. After 2018, CBO thinks that most of the increase in the number of uninsured would stem from changes the AHCA would make to Obamacare’s expansion of Medicaid, an expansion that allowed many more low-income adults to enroll in the program.
  • The bill would “freeze” enrollment in that program on January 1, 2020. Medicaid enrollees would trickle off the rolls as their incomes changed. And this would lead to another big decline in coverage.
  • The number of uninsured, CBO projects, would rise by 21 million in 2020 and hit 24 million in 2026.
  • The CBO projects that as the individual market shrinks, premiums would rise between 10% and 15% as some healthy people flee in 2018. But over the next few years, the agency expects premiums to go down to 10% lower than under Obamacare.
  • CBO thinks more young people will come into the market, as the GOP plan offers incentives to make the market more appealing to younger, (healthier) enrollees.
  • AHCA would be a huge cut to Medicaid. CBO estimates it would reduce spending on the health program for low-income Americans by $880 billion over the next decade. This helps explain why AHCA would reduce the deficit: The bill spends a lot less money on entitlement programs.

When Paul Ryan’s talking points are that their plan will reduce the deficit, and that premiums will go down by 10% OVER THE LONG TERM, you know that he doesn’t care that 24 million people will lose healthcare insurance.

That the GOP is choosing deficit reduction over covering American citizens is what the public will remember. When you kick out the poor and older folks, of course premiums will go down. But premiums will remain high for those in the 50-64 age bracket, and their premiums will be higher than currently.

The CBO report also finds that this legislation will provide massive tax relief, and make the most fundamental entitlement reform in more than a generation, if throwing people off Medicaid truly is “reform”.

Even before the CBO report was released, the Trump administration began laying the groundwork to discredit the agency and their report. White House press secretary Sean Spicer:

If you’re looking at the CBO for accuracy, you’re looking in the wrong place…they were way, way off last time in terms of how they scored and projected Obamacare.

Since this is the Ides of March, you should have expected some stabbing.

Their criticism is centered on the fact that CBO previously overestimated the number of people who would enroll in the marketplaces. That’s true: Earlier CBO reports estimated that the Obamacare marketplaces would have 26 million enrollees this year. Last year, CBO revised that estimate to 15 million.

Critics don’t mention that the CBO also underestimated how many people Medicaid expansion would cover. The overestimate and the underestimate essentially cancel each other out: Obamacare is covering just about as many people as CBO expected back in 2013.

Curiously, Trump said his health care plan would cover EVERYONE, and it would be much cheaper and much better. Except it won’t.

When you think about bad data, remember that Trump said we shouldn’t trust the Bureau of Labor Statistics numbers on monthly employment last year, he said they were fake. Now, Trump says the numbers in this month’s data release are real. You be the judge:

Obama in February 2016 — 237,000 new jobs
Trump in February 2017 — 235,000 new jobs

Trump: Making America a Slightly Less Great Again.

Your daily musical interlude appropriately is from the group the Ides of March. Here is “Vehicle”, their only hit, originally published in 1970, and performed live at the Chicago House of Blues in 2014:

https://www.youtube.com/watch?v=2aHe5-2SsJY

That 70 year-old guy can still sing.

Those who read the Wrongologist in email can view the video here.

Sample Lyrics:

Well, I’m the friendly stranger in the black sedan

Won’t you hop inside my car?

I got pictures, candy, I’m a lovable man

And I can take you to the nearest star

 

Kinda like the GOP promises on healthcare.

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Why Trump Doesn’t Talk About Jobs Anymore

The Daily Escape:

(Bamboo after snowfall in January, near Kyoto. Photo by Hiroki Kondo)

During the 2016 presidential race, Trump campaigned on populist themes. Now that he is in office, it is clear that his policies will be neither populist nor popular, but strictly pro-business. The first clue was his choice of Cabinet members. Despite promising to “drain the swamp”, nobody realized that he could do that by making lobbyists pointless, as their clients are in charge of the government: The CEO of Exxon is head of foreign policy, a former Goldman Sachs partner heads Treasury, the daughter of a ship owner heads Transportation, a corporate raider is at Commerce, and so it goes.

Two months into his presidency, it is clear that the Trump economic policy is pro-business, not pro-jobs, or pro-little guy. If you still have doubt, the Republicans just rolled back a series of Obama-era worker safety regulations. The Senate voted 49-48 to kill a rule that required federal contractors to disclose and correct serious safety violations.

It’s clear that industry CEOs can’t believe their good luck, despite having opposed Trump at every step before the election. He’s only asking them for some vague promises to add new American jobs in return. Acting normal when they are interviewed after leaving a Trump meeting must be the hardest part of their day.

Trump hardly mentions jobs anymore, because he knows there aren’t many. His bogey man of weak domestic manufacturing needs to be addressed: China’s total exports in 2015 were $2.3 Trillion. The US total exports in 2015 were $1.5 Trillion, second in the world.

And the total value of US manufacturing in 2015 was $6.2 Trillion and we are doing it with fewer people than ever before. Today, US factories produce twice as much stuff as they did in 1984, but with one-third fewer workers.

Trump’s carrot and stick approach with US companies is theater. He is now industry’s number one value creator: When he commended Ford for deciding not to build a new plant in Mexico, the price of its shares rose 4.5%.

Softbank shares went up 6.2% after being praised by Trump for investing $50 billion in the US. Softbank’s motive was simple: Softbank owns Sprint, who would like to merge with T-Mobile. The authority to permit this merger lies with the new head of the FTC, yet to be named by Trump. Trump’s positive tweets feed Softbank’s hopes that the merger will be approved.

The Trump presidency has begun in the worst possible way for all who believed he would be an activist in new jobs creation for the lightly skilled, the people who overwhelmingly helped to elect him.

If the opposition wants to take Trump down, they should stop talking about Russia, and focus on Trump’s record with jobs creation. He made big promises – a job for everyone. It will be a long time (if ever) before a significant number of new manufacturing jobs materialize. This is true because Trump’s plan is to cut the fat out of government, cutting so many jobs that he might never add enough to make up for those he eliminates.

His plan is to use the freed-up funds to do something splashy with infrastructure. This would allow him to boast significant job creation, while downplaying the lost jobs in government. If Trump can figure out how to take unemployed, 50+ year old white males living in small town West Virginia, and make them productive, employed workers, then he’s a genius.

Capitalism hasn’t changed. A subset of oligarchs led by Trump have seized control of the US government. They are “nationalists”. Another subset, the “globalists” lost control of the state.

OTOH, the American people would have lost regardless of who won.

This is being repeated around the industrialized world, from Brexit, to Marine Le Pen’s right-wing challenge in France, to far right challenges to Angela Merkel in Germany.

The chaos described in Naomi Klein’s Shock Doctrine: The Rise of Disaster Capitalism is engulfing the world.

In honor of those who still believe that Trumpy will solve the jobs equation, here is Alan Jackson with “Hard Hat and a Hammer”:

Those who read the Wrongologist in email can view the video here.

Sample Lyrics:

Lace-up boots and faded jeans
A homemade sandwich, and a half a jug of tea
Average Joe, average pay
Same ol’ end, same ol’ day

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Monday Wake Up Call – Repair and Replace Edition

Where is the GOP plan for repealing and “replacing” Obamacare? It has been moved to an off-ramp on the Trump highway. Why? WaPo’s Greg Sargent explains: (emphasis by the Wrongologist)

For weeks now, Republicans have employed a range of tortured talking points designed to push one idea: The GOP repeal-and-delay plan will not leave anyone without health coverage, and is merely designed as a transition that will ultimately move us seamlessly to the new, improved health care system Republicans envision, with the details to be worked out later.

The GOP’s problem is that several red states could be taken out of the individual insurance market completely. The Congressional Budget Office recently examined a version of the GOP repeal-and-delay bill (one passed by Republicans in 2015 and vetoed by Obama), and concluded that insurers would exit the market, and 10% of Americans could be living in an area that had no participating insurers at all.

And that 10% of the population is concentrated in Republican areas.

Jeanne Lambrew, a former Obama administration official involved in implementing the ACA, conducted an analysis to determine where that 10% percent resides. Using data furnished by the Kaiser Family Foundation, Lambrew singled out counties that met two criteria:

  • They have low populations
  • They currently only have one insurer serving individual market customers

It’s a big list. The states include: Alaska, Utah, Wyoming, Oklahoma, Texas, Missouri, Mississippi, Alabama, Tennessee, Georgia, South Carolina, Kentucky, and West Virginia. In addition some at risk counties are in swing or blue states like North Carolina, Nevada, Ohio, Pennsylvania, Wisconsin, and Illinois. And in a few cases, entire states would lose coverage. In Oklahoma, Wyoming, Arizona, South Carolina and Alabama, individual markets would be completely eliminated.

In other words, Repealing and delaying Replacement could be a political bloodbath for Republicans, at least in the House in 2018. And the GOP knows it. At the GOP Strategy Meeting in Philadelphia, Tom McClintock (R-CA) said: (emphasis by the Wrongologist)

We’d better be sure that we’re prepared to live with the market we’ve created with repeal. That’s going to be called Trumpcare. Republicans will own that lock, stock and barrel, and we’ll be judged in the election less than two years away.

The judgement has already started. The LA Times reports that the execrable Rep. McClintock ran into a buzz saw at his raucous town hall meeting in Roseville CA:

The California congressman ultimately was escorted out by police.

KQED’s Katie Orr reported that the 200 seats for the town hall set up by the Republican in Roseville, CA were filled, and hundreds more people remained outside. More from the LA Times:

McClintock is one of many members of Congress who have been encountering protests at their district offices or town hall meetings since President Trump took office just over two weeks ago. Most protesters have been asking members to fight the possible repeal of the Affordable Care Act…

Some Republicans seem to be open to “repair” instead of replacing Obamacare. The term “Repair” was suggested by Republican wordmeister Frank Luntz. Luntz, according to Bloomberg, recommended the term because it:

Captures exactly what the large majority of the American people want…the public is particularly hostile about skyrocketing costs, and they demand immediate change.

Luntz understands that Americans want their health insurance to be both generous in terms of coverage, and affordable in terms of premiums. The ACA tries to deliver that by subsidizing poorer people’s premiums. Those subsidies cost money, and that money is partly funded by taxes on the rich.

But Republicans got elected by promising to reduce rich people’s taxes. This means whether they replace or repair, their plans involve rolling back the taxes paid by the rich. That leaves less money to subsidize insurance for the non-rich, and that means the non-rich will either pay higher premiums, or accept worse coverage.

Keeping voters in Red States on board with the GOP requires that they abandon repeal, or pass a repeal/replace bill that essentially leaves the law intact.

If they repeal the tax increases and use deficit financing, they could accomplish 90% of what their main constituents, plutocrats and the white working class, care about. Whether they are smart enough to go this route is questionable.

Time for Congress to wake up! Time is against them since they voted to repeal the ACA 50+ times, but STILL have no plan for replacing it. To help them wake up, here are Jeff Beck, Lizzie Ball (violin), Tal Wilkenfeld (bass) & Jonathan Joseph (drums), playing the Irish instrumental “Women of Ireland” live at the “Crossroads Guitar Festival” in Madison Square Garden NYC, on April 13th 2013:

https://www.youtube.com/watch?v=0ej_X2_SggQ

Those who read the Wrongologist in email can view the video here.

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